Daily Market Analysis from NewForex Broker

[Anna Mon]

Forex News from New Forex: Greenback drops against the euro after unemployment data

On Friday, June 17, the US dollar loses ground versus the euro. Weak data from the US reduce attractiveness of the greenback. Information on jobless claims was released yesterday and last week the number increased by 13 000 to 277 000 instead of expected decline to 270 000. The consumer price index for May shed from 1.1% to 1.0% year on year. Today investors wait for new data in the construction sector.

The pair euro/dollar picked up 0.33% to 1.126. USD/JPY climbed 0.09% to 104.32. The Japanese currency surged 2.5% this week hitting 103.55 yesterday, a high since August 2014. It is highly likely that the yen will hold its uptrend and go to 102 against the US dollar.

The Australian and the New Zealand dollar rose 0.41% and 0.11% respectively. The dollar index lost 0.25% to 94.53.

American indexes stay in the green zone. The Dow Jones Industrial jumped 0.53%, the S&P 500 added 0.31%.



NewForex Analyst

David Fineberg

Forex News from New Forex: Gold takes a break after a rise

Gold futures with the delivery in August shed 0.82% today to 1.287.80 a troy ounce. The immediate level of support is seen at $1,273.0 (a low since June 13), the level of resistance stands at $1,316.40 (a high since June 16). We expect a further rise of the precious metal as the question of Brexit and the decision of the Fed to keep the interest rate unchanged increase the demand for the yellow metal. Gold prices surged 0.7% since the start of the week and 21% since the start of the year.

Today’s decline is due to the murder of the Parliament member Jo Cox in the UK who voted for keeping a membership in the European Union. The first murder of the PM since times of Irish terrorism can push the UK citizens to vote for staying in the EU. Silver futures with the delivery in July slid 1.18% today to $17.40.

Oil pares its losses for the first time since the last seven days. WTI added 1,17% on Friday to $46.73 a barrel, Brent picked up 1.59% to $47.94.



NewForex Analyst

David Fineberg


Forex News from New Forex: European and Asian indexes gain

European indexes advance today following a profitable trading session in Asia. The pan-European index STOXX 600 surged 1.03%, main sectors of economy show firm gains. The UK’s FTSE rose 0.84%, the German DAX climbed 0.39%, the French CAC 40 jumped 0.60%.

In Japan the Nikkei 225 edged up 1.07% after a 3.1% fall on Thursday when the Bank of Japan decided to delay the introduction of extra stimulus measures. The Topix added 0.8%, the JPX-Nikkei Index 400 managed to pick up 0.7%.

The situation in Hong Kong is favourable like in the whole Asia today. However, currently global markets feel tension due to the coming referendum in the UK. Investors consider that the murder of the UK Parliament Member might change the sentiment in favour of remaining in the EU. The Hang Seng index rose 0.7%, although it lost 4.1% this week. The China Enterprises Index increased by 0.9%. In Hong Kong leading sectors of economic activity demonstrate positive dynamics.



NewForex Analyst

David Fineberg

 

[Anna Mon]

Forex News from New Forex: Gold prices decline after a firm rise

Gold price lose ground in the trading on Monday as worries over the Brexit slightly weaken. The possibility of Brexit would boost positions of gold and in case of a positive decision, gold might rise to $1,350 this week.

Gold futures with the delivery in August shed 0.95% to 1.282.50 a troy ounce. Last week the precious metal hit a 2-year high at $1,318.90.

Spot gold lost 1.41% to 1.279.85, the biggest intraday fall since May 24. Meanwhile, gold holdings in the largest EFT-fund SPDR Gold Trust increased by 0.59% to 907.88 tonnes, a high since October 2013.

Silver futures with the delivery in July edged down to 0.29% to 17.355 a troy ounce. We expect that global markets will stay quite volatile until the referendum outcome in the UK, traders should watch carefully the market situation.



NewForex Analyst

Luigi Campo

Forex News from New Forex: The pound takes off before the referendum

The pound sterling gains ground in the trading on Monday, June 20. Recent opinion polls show that UK citizens are prone to staying in the EU. However, the final decision will be known on June 23. The currency instrument pound/dollar picked up 1.92% to 1.4628, a 3-week high. The pair euro/pound edged down to 1.36% to 0.775.

The US dollar declines after the decision to keep the interest rate unchanged. The pair euro/dollar climbed 0.54% to 1.1335. The Canadian dollar managed to rise 0.59% to 1.2816 amid the increase of oil prices.

European markets stand in the green zone as concerns over the possible Brexit have weakened. The UK’s FTSE added 2.47%, the German DAX edged up 3.25%, the French CAC rose 3.19%. The pan-European index STOXX 600 increased by 3.28%.

Asian markets are at a high ebb as well. The Japanese Nikkei, Topix and JPX-Nikkei Index 400 gained 2.3%. Hong Kong index Hang Seng rose 1.7%, China Enterprises Index 1.8%.



NewForex Analyst

Luigi Campo


Forex News from New Forex: The Aussie and the kiwi rise against the US dollar

On Monday, June 20, the Australian and the New Zealand dollar have significantly gained amid keeping the US interest rate unchanged and the substantial rise of oil prices. AUD/USD stands at 0.7462 (+0.89%), NZD/USD is seen at 0.7114 (+0.91%).

The Fed’s decision to remain the interest rate without any changes has considerably lowered experctations of the rate hike in the nearest time. As for oil prices, they gain ground due to the coming referendum in the UK on June 23. The last opinion poll showed that more citizens are ready to vote for keeping the EU membership.

In the Asian trading oil prices jumped amid the weak dollar, traders treat commodities as a safe-haven. WTI with the delivery in July advanced 1.54% to $48.72 a barrel, Brent with the delivery in August surged 1.67% to $49.99.

At the moment the dollar index sheds 0.64% to 93.70, a low since June 9.


NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Technical analysis of EUR/USD

In the trading on Tuesday the currency pair is seen within the immediate support at 1.1268 and resistance at 1.1349 showing a slender lead of bulls.

In a four-hour time frame we see that exponential moving averages with periods 20 and 55 days are close to crossing upwards and keep rising. The MACD-histogram stays in the positive zone but has slightly slowed down the current trend signaling the continuation of the uptrend. The RSI stands above its central line but demonstrates a trend with the possible consolidation at 1.1350-60 counterbalancing bulls and bears.

NewForex Analyst

Michael Butnitsky


Forex News from New Forex: Technical analysis of GBP/USD

In the European trading session we observe the continuation of the uptrend in the market. The price remains within the level of support at 1.4566 and resistance at 1.4852.

Exponential moving averages EMA20 and EMA55 crossed upwards and rise, the RSI demonstrates accumulating power of the current bullish trend. However, the oscillator Stochastic stays in the zone of overbought since the end of the last week which might signal the coming change of the market sentiment.

NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Asian markets unsteady before the referendum in the UK

On Tuesday, June 21, Asian markets trade in mixed ways. The Japanese index Nikkei climbed amid the weakening yen. At the end of the trading session the index gained 1.3%, the Topix picked up 1.2%, the JPX-Nikkei Index 400 surged 1.3%. The Japanese yen lost 0.55% against the greenback to 104.44 after a 22-month high at 103.57.

Chinese markets closed in the negative zone today. The Shanghai Composite dropped by 0.34%, the Shenzhen Composite slid 1.01%. In Hong Kong the Hang Seng index managed to jump 0.55%, investors expect that the UK will remain in the European Union. The China Enterprises Index gained 0.8%. Main sectors of economy demonstrate a firm rise, especially energy and IT sectors.

The Australian index ASX 200 advanced 0.33% amid the rise of the financial sub-index. On Tuesday the Australian and the New Zealand dollar rose 0.55% and 0.35% against the US dollar.



NewForex Analyst

Michael Butnitsky


Forex News from New Forex: The pound keeps rising against the dollar and the euro

In the trading on Tuesday, June 21, the euro reached a 3-month low against the pound sterling, most market participants consider that the UK will hold its membership in the EU. The currency instrument euro/pound shed 0.09% to 0.7688. Positive data from Germany failed to boost the euro. The economic sentiment in Germany ascended from 6,4 in May to 19,2 in June instead of 5,0.

The pair euro/dollar added 0.27% to 1.134. The instrument pound/dollar surged 0.33% to 1.4743. At the moment the dollar index lost 0.18% to 93.51.

The global market is highly sensitive to opinion polls from the UK. Fresh data shows that 53% of citizens are ready to support the EU membership, 46% stand for leaving the Eurozone.

European stocks trade with a slight increase. The German DAX picked up 0.44%, the French CAC 40 climbed 0.65%, only the UK’s index FTSE currently loses 0.04%. The pan-European index STOXX 600 advanced 0.54%.



NewForex Analyst

Michael Butnitsky

 

[Anna Mon]

Forex News from New Forex: Gold falls before the defining day in the UK

Today, on June 22, gold keeps negative dynamics before the referendum in the UK devoted to leaving the European Union. At the moment gold futures with the delivery in August shed 0.41% to $1.266.90. Spot gold lost 0.28% to $1.264.50. Gold holdings in the largest EFT-fund SPDR Gold Trust rose 0.39% on Tuesday to 912.33 tonnes, a high since October 2013.

Only one day left before the main event in the UK, global markets sit on the hedge. Although recent opinion polls show the lead of Bremain, the difference is minimal and statistical discrepancy should not be excluded. Thus, market participants can’t eliminate the possibility of Brexit.

If it happens, Eurozone economy might tip into a recession putting pressure on the global economy and increasing the investment attractiveness of precious metals.



NewForex Analyst

Sara Rosenstein


Forex News from New Forex: Dollar loses ground against the main currencies

On Wednesday, June 22, the US dollar declines against the main currencies amid the coming referendum in the UK. The currency instrument pound/dollar stands at 1.4668 (+0.16%). The latest opinion poll shows that the difference between those who stand for remaining in the EU (45%) and those who want to leave (44%) is very subtle.

Euro/dollar surged 0.51% to 1.1297. The yesterday’s announcement of the ECB President Mario Draghi about the readiness of the bank to any decision of the UK lent support to the single currency.

Today the dollar tumbled 0.18% to 104.55 against the yen, dollar/franc slid 0.43% to 0.9577. The Australian and the New Zealand dollar advanced 0.67% and 0.59% respectively. The Canadian dollar picked up 0.36% to 1.2768. At the moment the dollar index slipped to 0.36% to 93.82.

European markets act with discretion showing a slight rise. The UK’s FTSE climbed 0.33%, the German DAX added 0.57%, the French CAC 40 rose 0,38%. The pan-European index STOXX 600 edged up 0.15%.



NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Technical analysis of GBP/USD

On Wednesday trades the currency pair demonstrates a slight decline standing within the support at 1.4551 and resistance at 1.4718.

EMA20 and EMA55 keep rising today, the MACD-histogram has slowed down but remains in the positive zone, the RSI indicates that bulls have weakened a bit and the market shows an uptrend.

The oscillator Stochastic left the zone of overbought which might be an anticipated signal to a new rise according to the current technical structure, especially if we take into account that the market consolidated above the lines of Ichimoku Kinko Hyo.


NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of EUR/USD

On Wednesday the pair trades with a considerable price decline within the immediate support at 1.1187 and resistance at 1.1297. Yesterday’s trades closed with a firm bearish candlestick which indicates a trend change in favour of bears.

In a four-hour timeframe all exponential moving averages crossed downwards and descend. The MACD-histogram entered a negative zone and started to decline as well as the RSI. The oscillator Stochastic indicates that the currency pair is oversold which might mean the end of the correctional movement in the short run and growth recovery of this market.

In the short run if bears manage to fix below the strong support at 1.1131, they will breach the market to 1.0853-33. If bulls stay above the resistance at 1.1353, the pair might rise to 1.1415.



NewForex Analyst

Michael Butnitsky

 

[Anna Mon]

Forex News from New Forex: Stock markets in the expectation of the referendum in the UK

On Thursday, June 23, Asian markets trade in mixed ways. Japanese shares increase, investors prefer to cover short positions. The Nikkei advanced 1.1% to 16,238.35, a 10-day high. The Topix gained 1.1% to 1,298.71.

Chinese markets showed negative dynamics today but without dramatic losses, investors are in the anticipation of the referendum results in the UK. The CSI300 slid 0.5%, the Shanghai Composite shed 0.5% to 2,891.96. Market participants worry not only about the possible Brexit but also about the economic slowdown in China.

On Thursday European markets opened in the green zone, main indexes demonstrate gains. The pan-European index STOXX 600 picked up 0.27%. The UK’s FTSE climbed 0.53%, the German DAX jumped 0.61%, the French CAC 40 rose 0.52%.

In spite of the last opinion polls, global markets hope for the Bremain. Polling stations opened in the UK at 7:00 local time and will be closed at 22:00. Presumably the referendum outcome will be announced by early afternoon tomorrow.



NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Oil returns to a rise

In the trading on Thursday oil prices advance. On the Mercantile Exchange in London Brent with the delivery in August jumped 1.02% to $50.39 a barrel. On Wednesday black gold shed 1.46% ahead of the referendum in the UK.

WTI futures climbed 1.12% to $49.68, on 22 June it lost 1.44% as oil inventories in the US dropped last week by 0.9 mln. barrels to 530.6 mln. After a 13-year low at $26.05 a barrel hit in February 2016, crude oil advanced 85%.

Gold hit a 2-week low on Thursday. Spot gold slipped to 0.3% to $1,262.26 a troy ounce. Gold futures with the delivery in August edged down to 0.13% to 1.268.40. Meanwhile, silver futures managed to gain 0.45% to $17.39.

Gold holdings in the SPDR Gold Trust increased by 0.39% to 915.90 tonnes, a high since October 2013.



NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Technical analysis of GBP/USD

In the trading on Thursday the pound sterling has significantly increased against the US dollar overcoming the immediate resistance at 1.4847 and now testing the next level at 1.4913, a high since 29 December 2015. The price consolidated above the lines of Ichimoku Kinko Hyo which implies a further development of the bullish scenario and the market growth to the next resistance level at 1.4950. Exponential moving averages with periods 3, 20 and 55 days increase, the MACD-histogram stays in the positive zone and rises as well as the RSI.

However, the market situation is not so clear due to the referendum in the UK today whose results might influence strongly on the financial market.

NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of EUR/USD

On Thursday the currency pair trades with a considerable price rise within the support at 1.1267 breaching the immediate resistance level at 1.1368 and tests now 1.1415, a high of this month. It is likely that it’s the result of the tendency among the Brits to buy euros as long as the Brexit results are not announced.

Exponential moving averages with the periods 20 and 55 days crossed upwards and grow. The MACD-histogram entered a positive zone but lags behind with the signal for bulls. The oscillator Stochastic stands in the zone of overbought. Thus, the current market situation is unclear, all market participants wait for Brexit results.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Referendum results made markets collapse

On Friday, June 24, global markets seesaw after the decision of the UK to leave the European Union. For remaining in the EU voted 48.1%, for Brexit voted 51.9%. Brexit became a tremendous shock for markets today. The pound sterling shed 7.88% against the US dollar hitting a low since 1985. The euro followed the British currency and fell 6.41% against the yen and 2.90% against the US dollar.

Japanese stocks hit a 5-year low. The Nikkei dropped by 7.9%, a low since October 2014. The Topix and the JPX-Nikkei Index 400 slid 7.3%. Shares in Hong Kong collapsed after the news today. The Hang Seng tumbled 2.9%, the China Enterprises Index slipped to 2.9%.

European markets experience strong pressure at the moment. The pan-European index STOXX 600 plummeted by 7.21%. The German DAX lost 6.85%, the UK’s FTSE 4.27%, the French CAC 40 dropped by 8.46%. Main UK’s banks among which are Barclays and the Royal Bank of Scotland shed around 20% on Friday tradings.

Brent slumped to 4.71% to $48.51 a barrel, WTI fell 4.39% to $47.91. Precious metals are increasing profit, fold futures jumped 5.00% to $136.20 a troy ounce, silver advanced 3.70% to $17.995.

Obviously global markets were not ready for this outcome and are deeply concerned about the consequences of Brexit.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Asian markets recover after Brexit

On Monday, June 27, Asian markets closed in mixed ways, most investors try to evaluate the referendum results in the UK. The Australian index ASX 200 climbed 0.47% paring some of its earlier losses. The Australian dollar shed 0.56% to 0.7421 against the US counterpart.

Indexes of mainland China traded in the positive zone. Shanghai Composite rose 0.86%, Shenzhen Composite surged 1.44%. So far Brexit exerts a restrict influence on the Chinese market as it is not completely open to the European market. However, shares in Hong Kong are more sensitive to movements in the global market. On Monday the Hang Seng index edged down to 0.84%.

The Japanese index Nikkei regains ground and managed to add 2.4% today. Some members of the Japanese government do not eliminate the possibility of intervention into the currency market in order to stabilize the yen. At the moment the yen advances 0.07% to 102.13 against the greenback. The Topix and the JPX-Nikkei Index 400 picked up 1.8%.


NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Technical analysis of EUR/USD

On Monday the currency pair trades with a slight price decline in comparison with the previous week, the price remains within the immediate support at 1.0955 and resistance at 1.1071.

Exponential moving averages with the periods 20 and 55 days crossed downwards and decrease today. The MACD-histogram stands in the negative zone and keeps descending. The oscillator Stochastic sends signals in favour of bears.

After the UK’s decision to leave the European Union the position of the euro is quite uncertain which leads to a wide range of the main and strong levels of support and resistance at 1.0755 and 1.1271. Only after the market consolidation above or below these magnitudes we can speak about the formation of a long-term trend.

NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of GBP/USD

On Monday the currency pair shows some downward trend within the level of support at 1.3325 and resistance at 1.3755. The RSI keeps sliding below its central line. EMA20 and EMA55 crossed downwards and continue to decline.

The MACD-histogram stays in the negative zone and edges down. The oscillator Stochastic is seen in the zone of oversold which might foreshow the start of the correction in the short term. In general the situation is not in favour of bulls, the market consolidated far below the lines of Ichimoku Kinko Hyo. Only in case of breaching the current resistance at 1.3755, there will be a ground for strengthening of bullish positions.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Asian market closed without dramatic losses

In the trading on Tuesday, June 28, global markets keep digesting the decision of the UK to leave the European Union and are concerned about the political and financial circumstances of this decision. Asian stock markets teetered between positive and negative magnitudes.

The Japanese market traded quite discreetly. The Nikkei closed with a 0.1% rise, whereas the Topix and JPX-Nikkei Index 400 shed 0.1%. The yen tumbled 0.12% and 0.40% against the US dollar and the euro.

Stocks in Mainland China and Hong Kong decline, investors also worry about the consequences of Brexit. Blue chips CSI300 edged down to 0.2%, the Shanghai Composite stands flat at 2,896.30, the Shenzhen Composite managed to pick up 0.7%. The Hang Seng slid 0.9%.

The Australian and the New Zealand dollar gain ground against the US counterpart. The Aussie surged 1.02% to 0.7403, the kiwi jumped 1.14% to 0.7074. The Australian index ASX 200 slipped to 0.55%. The dollar index slid 0.36% to 96.20 at the moment.


NewForex Analyst

David Fineberg

Forex News from New Forex: Oil rises after Brexit shock
Oil prices gain ground in the trading on Tuesday, June 28, after a fall amid the referendum results in the UK. Brent futures with the delivery in September surged 2.14% to $48.17 a barrel, yesterday a 2.59% drop was seen. WTI futures with the delivery in July climbed 2.22% to $47.36, on Monday futures shed 2.75%. Today markets are in the anticipation of crude oil stock data from the USA.

A possible strike of Norwegian oil workers contributed to the rise of oil prices, they intend to suspend work on seven oil-gas fields in case of the failure of wage negotiations.

On Tuesday gold and silver lose ground, market participants fix their profit after the takeoff of oil prices to a 2-year high amid Brexit. Gold futures slid 0.55% to $1317.40 a troy ounce, silver fell 0.33% to $17.685. Spot gold slipped to 0.85% to $1.313.16, spot silver edged down to 0.27% to $17.671. We consider that this decline is temporary and in the near future metals will return to their uptrend.



NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of EUR/USD

On Tuesday the currency pair trades with a slight price rise within the level of support at 1.1016 and tests the immediate resistance at 1.1066. If the pair consolidates below the resistance level, we might see a movement to 1.0860. If the market consolidates above it, the price will jump to 1.1135.

In a 4-hour timeframe we see that moving averages EMA 20 and EMA 55 crossed downwards and keep sliding. The MACD-histogram and the RSI remain below their central lines but rise today. The oscillator Stochastic gains as well approaching the zone of overbought sending signals to buy.

NewForex Analyst

Luigi Campo


Forex News from New Forex: Technical analysis of GBP/USD

In the trading on Tuesday the market consolidates within the support level at 1.3153 and resistance at 1.3358. Exponential moving averages with periods 20 and 55 days keep declining, the MACD-histogram remains in the negative zone but has slightly slowed down. The RSI stands below its central line and shows signs of consolidation. The oscillator Stochastic foreshadows the growth of the currency pair in the short run.

As for long-term prospects, the market stands below the lines of Ichimoku Kinko Hyo which implies the further continuation of consolidation. If the pound sterling gets extra support and goes beyond 1.3358, there might be a movement to 1.3550. If the price fixes below the current support level, there might be a movement towards 1.3.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Pound sterling advances against the euro and the dollar

On Wednesday, June 29, the pound sterling surges against the euro and the US dollar, the market recovers after Brexit. The currency instrument pound/dollar picked up 0.40% to 1.3395 after hitting a 31-year low at 1.3122. The pound climbed 0.41% versus the euro.

The British currency is under pressure after the decision to leave the European Union, global markets are scared of financial consequences. Resignation of the UK’s Prime Minister David Cameron added political uncertainty to this situation. Today the EU leaders will continue discussing the consequences of Brexit at the summit in Brussels.

The euro is under pressure due to Brexit as well. The pair euro/dollar slid 0.08% to 1.1055. Euro/yen shed 0.28% to 113.35. The US dollar has slightly gained after a 1.1% growth of the GDP in the first quarter instead of the expected 1.0%. The dollar index eased 0.01% to 96.18.

NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Gold and silver trade without losses

Precious metals gain ground in the trading on Wednesday, market participants are ready to invest into safe assets after the unexpected decision of the UK to leave the European Union. Gold futures with the delivery in August picked up 0.17% to 1320.60 a troy ounce, yesterday they shed 0.51%. After the UK referendum the yellow metal hit a 27-month high at $1,362.60. Since the start of the year gold has risen by 25% amid concerns over the slowdown of global economic growth and delay of the interest rate hike in the USA.

Meanwhile, if Brexit exerts considerable influence on markets, central banks might take measures to stabilize them, which might have a negative impact on gold positions.

Spot gold climbed 0.48% to 1.318.40. In the nearest future metal might rise, uncertainty over the interest rate hike will lend support to gold.

Silver futures with the delivery in September jumped 2.24% to 18.29 a troy ounce.

NewForex Analyst

Sara Rosenstein

Forex News from New Forex: Technical analysis of EUR/USD

During the Asian trading session on Wednesday the single currency trades with a slight rate rise. On Tuesday the euro got support amid the general easing of the US dollar reaching 1.1111 and then bounced off to 1.1060-70, as the result tradings closed with a firm bullish candlestick on the day chart. However, the market could not fix outside yesterday’s support and resistance (1.1016 and 1.1066).

The 14-day RSI remains below its central line, exponential moving averages with periods 20 and 55 days decline without any sign of crossing. The oscillator Stochastic decreases sending signals to sell. The MACD-histogram stands in the negative zone but rises slowly to the positive field.

Thus, in the short run technical characteristics indicate a neutral market sentiment. For the uptrend the price should fix above the yesterday’s high at 1.1111. For the downtrend it should breach the current support at 1.1010 and then at 1.0982.

NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of GBP/USD

On Wednesday the pair is quite steady standing within the strong levels of support and resistance at 1.3272 and 1.3493 respectively testing the intermediate resistance at 1.3401.

In the short run the pair will further consolidate. A long-term technical structure is prone to the bearish market sentiment in case of breaching the strong level of support at 1.3119 (a low since June 27).

The MACD-histogram remains in the negative zone but rises. The RSI stands below its central line, the Stochastic sends a signal to sell.

NewForex Analyst

David Fineberg

 

[Anna Mon]

Forex News from New Forex: The review of the Aisan market

On Thursday, June 30, the Australian and the New Zealand dollar lose ground against the greenback. The pair AUD/USD tumbled 0.16% to 0.7437. The kiwi was sliding in the trading in Asia but now it stands flat at 0.711.

The US dollar trades in mixed way after the release of fresh economic data. Personal spending in May climbed 0.4% which corresponds to market expectations. Meanwhile, personal income decreased by 0.2% for the same period, the pending home sales index tumbled 3.7% instead of the expected drop by 1.1%. The dollar index stands at 95.65 (-0.05%).

The currency pair dollar/yen slipped to 0.05% to 102.76, euro/yen trades flat at 114.33. In Japan industrial production edged down to 2.3% in May instead of −0.1%. The Nikkei closed in the positive zone today (+0.06%). In June the Nikkei index slipped to 9.6%, the biggest fall since May 2012. Since the start of the year the fall is 18.2% amid the yen growth. The broader Topix shed 0.15%.



NewForex Analyst

David Fineberg

Forex News from New Forex: Oil tumbles after yesterday’s high

In the trading on Thursday, June 30, oil prices decline, market participants fix profit after yesterday’s high. The raw material gained support amid some weakening of concerns over Brexit.

Crude oil with the delivery in August slid 0.98% to $49.39 a barrel, on Wednesday it rose 4.24%,a high since April. Brent oil fell 0.77% to $50.22 a barrel, yesterday black gold added 4.18%.

US oil stocks declined by 4.1 mln barrels to 526.6 mln last week. Market participants expected a descend by 2.4 mln. barrels. The reduction of oil stocks has been observed for six weeks in a row.

An additional factor influencing on the fall of oil prices was the renewal of oil output in Nigeria. In Norway oil companies and trade unions started today 2-day negotiations over the wage increase hoping to avoid strikes which might lead to the decrease of oil and gas output by 12% in the country.

NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of EUR/USD

During the last three days the pair demonstrated a slight rise after a shock amid the referendum results in the UK devoted to leaving the European Union. In the trading on Thursday the price stands within the support at 1.1086 and resistance at 1.1117. Thus, we observe the continuation of the correctional period.

In the short term a growth resumption might be possible in case of consolidating above the strong resistance level at 1.1167 which might give a way to 1.1252. For the opposite scenario the market should breach the support at 1.1050 which will help to go to 1.0971.

Due to high market volatility sharp price movements do not exclude the continuation of consolidation. In a 4-hour timeframe EMA20 and EMA55 keep declining but the moving average with the period 20 days has slowed down and reverse. The MACD-histogram broke the even at the moment. The Stochastic informs about the overbought of the trading instrument.

NewForex Analyst

David Fineberg


Forex News from New Forex: Technical analysis of GBP/USD

During the whole week after Brexit results we observe high market volatility without the formation of a clear-cut trend movement.

On Thursday the currency pair trades in mixed ways with a slight price rise remaining within the support level at 1.3357 and resistance at 1.3606.

In the short term in a 4-hour timeframe the MACD-histogram is seen in the negative zone but is ascending now. The RSI is close to the central line and might move to the field above it. The Stochastic decreases sending signals to sell. A long-term technical structure remains negative which in its turn leads to the further market descend.

NewForex Analyst

David Fineberg

 

[Anna Mon]

Forex News from New Forex: Asian markets closed with a rise

On Friday, July 1, Asian markets started the first day of the new quarter in the positive zone. The Japanese index Nikkei kept rising closing trades at 15,682.48 (+0.7%). This week the index gained 4.9%, a weekly high since April 2016. The broader Topix surged 0.7% to 1,254.44, the JPX-Nikkei Index 400 advanced 0.6% to 11,320.65.

The pair dollar/yen shed 0.68% to 102.57. On Thursday information on household spending in Japan was released, it slid 1.5% exceeding the forecast (-0.2%).

The Chinese market closed in the positive zone, stock markets recover after Brexit shock. The growth of the service sector in June lent support to the Chinese market. Blue chips of the CSI300 index stand at 3,154.20, the Shanghai Composite climbed 0.1%. However, the manufacturing sector declined from 49.2 in May to 48.6 in June. The central bank of China might introduce new measures in the coming months to stimulate the economy.



NewForex Analyst

Luigi Campo

Forex News from New Forex: Positive data from Eurozone boost the euro

European markets trade in the positive zone on Friday, July 1. The pan-European index STOXX 600 picked up 0.08%. The UK’s FTSE climbed 0.34%, the German DAX jumped 0.18%, the French CAC 40 gained 0.11%.

The unemployment rate tumbled from 10.2% to 10.1%, a 5-year low. The manufacturing PMI advanced from 52.6 to 52.8. The pair euro/dollar rose 0.14% to 1.112.

Pound/dollar slid 0.17% to 1.3287. The immediate level of support is seen at 1.3318 (a low since June 27), a level of resistance stands at 1.3535 (a high since June 29). The British currency has been gradually recovering after heavy losses last week. The manufacturing PMI climbed in the UK from 50.1 in May to 52.1 in June. The pair euro/pound advanced 0.23% to 0.8359. Obviously Brexit has not influenced on the economic state of Eurozone so far but changes will be seen in the nearest time.



NewForex Analyst

Luigi Campo


Forex News from New Forex: Technical analysis of EUR/USD

After the rally during the last two trading sessions the euro started to lose ground due to some rumours that the ECB is concerned about the contraction of the volume of debt securities corresponding to buying criteria. Yesterday

tradings closed with a firm bearish candlestick on a day chart. The market retains high volatility potential.

On Friday the pair trades with a slight price decline remaining within the support at 1.1000 and resistance at 1.1132. In the short run as we see on a four-hour chart the EMA 55 slides, the EMA 20 reversed and started to rise. The

MACD-histogram broke even, the oscillator Stochastic reversed upwards and sends a signal to buy.

NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of GBP/USD

After the announcement of the Bank of England Governor Mark Carney about the intention to cut down the interest rate within the quantitative easing program the pound sterling retains its downtrend, yesterday’s trading session closed

with a bearish candlestick.

On Friday GBP/USD trades with a descending potential standing within the support level at 1.3114 and resistance at 1.3406.

Exponential moving averages keep declining, the MACD-histogram remains below its central line, the price consolidated below Ichimoku Kinko Hyo which indicates the further market downtrend.

NewForex Analyst

Michael Butnitsky

 

[Anna Mon]

Forex News from New Forex: Gold keeps advancing amid uncertainty after Brexit

In the trading on Tuesday, July 5, gold and silver prices steadily increase hitting a 2-year high. Gold futures with the delivery in August jumped 0.59% to $1346.90 a troy ounce. At the start of tradings on Monday the metal edged up to $1,360.30. In June gold rose almost 9%, a high since February 2016. Since the start of the year the yellow metal added 27%. The decision to keep the US interest rate unchanged gave support to gold as well as Brexit which prompted market players to invest into safer assets.

Spot gold slid 0.47% to $1.344.01. On Monday the metal reached $1,357.60, a 2-year high since June 2014.

Silver futures with the delivery in September picked up 1.67% to $19.915 a troy ounce. On Monday the metal rose to $21.09, a high since July 2014.

It’s obvious that after Brexit metals have considerably gained but now there might be some pullback and that's quite justified.


NewForex Analyst

David Fineberg

Forex News from New Forex: The pound sterling falls against the euro and the US dollar

The British currency hit again a 31-year low against the greenback, the release of negative data on the UK service sector caused concerns over the impact of Brexit on the UK’s economy. The PMI service dropped from 53.5 in May to 52.3 in June, market participants expected a higher magnitude — 52.7. The currency pair pound/dollar stands at 1.3144 (-1.08%). The immediate level of support is seen at 1.3118, a low since June 27 and a 31-year low. A level of resistance is at 1.3339, a high since July 4.

The Bank of England Governor Mark Carney stated at the meeting today that the possibility of some slowdown of the economic growth can not be excluded. The number of vulnerable enterprises may increase due to hard economic perspectives. However, the financial system of the country is going to support companies who face difficulties.

The pound sterling edged down to 1.07% against the euro to 0.8479. The PMI service rose in Germany from 53.2 in May to 53.7 in June. In general the PMI service jumped in Eurozone from 52.4 to 52.8 last month.



NewForex Analyst

David Fineberg

 

[Anna Mon]

Forex News from New Forex: Technical analysis of EUR/USD

On Tuesday, July 5, the pair EUR/USD trades within the level of support at 1.1122 and resistance at 1.1165. On a 5-minute chart we see that the price bumped into a strong resistance at the start of the Asian session. Bearish sentiment is getting stronger. According to NewForex analysts, to make the right decision regarding this pair it’s preferable to wait for the breach of the strong support levels as signals of the MACD indicator and the Stochastic are not firm enough at the moment.

NewForex Analyst

Michael Butnitsky

 

[Anna Mon]

Forex News from New Forex: European and Asian markets remain under pressure

European markets opened with a downtrend on Wednesday, July 6. The UK’s decision to leave the European Union keeps exerting pressure on the global market. The pan-European index STOXX 600 tumbled 0.61%, the German DAX slid 0.93%, the French CAC 40 fell 0.97%, only the UK’s FTSE is gaining 0.04% at the moment. The British currency retains the downward dynamic against the greenback losing 0.69%. The pound edged down to 0.47% versus the euro.

Asian markets decline due to concerns about Brexit. Japanese stocks hit a week low, the Nikkei edged down to 1.9%, a low since June 28. The Topix slipped to 1.8%, the JPX-Nikkei Index 400 lost 1.9%. An active selloff is observed in the Japanese market, investors are scared of Brexit consequences.

Shares in Hong Kong lose ground as the yuan hit a new 5-year low against the US dollar. The pair USD/CNY climbed 0.19% to 6.69, a rise has been seen for the fifth trading session. The Hang Seng edged down to 1.2%, the China Enterprises Index shed 1.6%.



NewForex Analyst

Michael Butnitsky

Forex News from New Forex: The US dollar advances against the main currencies

In the trading on Wednesday, July 6, the greenback stands near a week high against the main currencies. The pair pound/dollar tumbled 0.36% to 1.2975, the pound sterling faces a strong pressure after the statement of the Bank of England Governor. He claimed that the UK’s decision to leave the EU the country might lead to considerable financial consequences.

The currency instrument euro/dollar slid 0.08% to 1.1066. Factory orders in Germany remained unchanged in May, although experts waited for a 1% increase.

The pair dollar/yen fell 1.39% to 100.29. The yen hit a 3-year high amid the losing pound sterling. Investors prefer to invest into safer assets.

The Australian dollar climbed 0.08% versus the buck, the kiwi slipped to 0.55%. On Wednesday the dollar index declines 0.15% to 96.13. Market participants are in the anticipation of the Fed’s minutes where some keys to the politics of the central bank in the nearest future might be given.



NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of EUR/USD

On Wednesday, July 6, the pair EUR/USD keeps it bearish sentiment. Meanwhile, the decline of quotes slowed down near the strong support level at 1.1035. Operations with the pair seem quite risky today as traders expect an important Fed’s minute later today. The further pair movement depends mostly on data from the USA.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Aussie falls after lowering of the credit rating

On Thursday, July 7, the Australian dollar loses ground against the US dollar after cutting down the credit rating of Australia. The rating agency Standard and Poor’s fetched down the rating of Australia to AAA, i.e. from stable to negative. The pair AUD/USD shed 0.23% at the start of the trading session, at the moment it is edging down to 0.07% to 0.752.

The New Zealand dollar advances 1.30% against the greenback, market participants realised after the yesterday’s report of Fed that they should not wait for the interest rate hike in the nearest time.

The dollar index slipped to 0.03% to 96.10.



NewForex Analyst

David Fineberg

Forex News from New Forex: Pound rises amid positive manufacturing data

The pound sterling gains ground in the trading on Thursday, July 7, after the release of positive economic news. Industrial production dropped in the UK by 0.5% in May. However, it is much better than the forecast at -1.0%. Year on year the industrial production increased by 1.4% in May instead of expected 0.5%. Manufacturing production shed also 0.5% which is more positive than the forecast -1.0%. Year on year manufacturing production surged 1.7% with the forecast only at 0.7%.

The currency instrument pound/dollar trades currently at 1.3025 (+0.74%). Against the euro the pound picked up 0.93% to 0.8503.


NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of EUR/USD

In the trading on Thursday the pair remains within the level of support at 1.1065 and resistance 1.1149. A slight bearish sentiment prevails in the market with attempts to breach the current support level but without luck at the moment.

Exponential moving averages with periods 20 and 55 days crossed downwards and decline. The MACD moved into the zone below zero, the Stochastic sends a signal to sell. The euro gained some support after the release of yesterday’s minutes by the Fed, the price climbed to 1.1111. However, the market could not stay at this level and pulled back to 1.1065 at the end of the trading session.

Most market participants are in the anticipation of the results of the ECB Monetary Policy Meeting later today. And the market is eagerly awaiting tomorrow’s data from the USA on unemployment rate and nonfarm payrolls.

Trading decisions should be based on the above-mentioned macroeconomic data.

NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of GBP/USD

Hitting a new 31-year low on Wednesday declining to 1.2795, the currency pair got support after the release of data from the USA and today trades within the support at 1.2747 and resistance at 1.2980. Based on the results on the previous trading session the pair formed a firm bearish candlestick in a day-chart which implies that the market intends to go downwards and there might be some new anti-records.

EMA20 and EMA55 keep declining, the MACD remains below its central line as well as the RSI. Only the oscillator Stochastic sends a signal to buy.

NewForex Analyst

Michael Butnitsky

 

[Anna Mon]

Forex News from New Forex: US unemployment by numbers

Today global markets are in the anticipation of unemployment data from the US. The unemployment rate is calculated according to the number of people actively searching for work. In May 2016 this number dropped to 4.7%, a low since November 2007. The number of unemployed residents decreased by 484,000 to 7.4 mln.

An average unemployment level in the USA over 1948 to 2016 period is 5.82% with a high at 10.80% in November 1982 and a low at 2.50% in May 1953.

In May the unemployment rate among man was 4.3%, women 4.2%, Whites 4.1%, among Hispanics 5.6%, Asians 4.1%, African Americans 8.2%. Unemployment among teenagers stands at 16.0%. Around 1.9 mln US residents can not find work for more than half a year. The State calls this group "long-term unemployed".

If we look carefully at the difference between states, the lowest rate in May 2016 was in South Dakota with 2.5%, the highest in Alaska with 6.7%.

June forecast shows a slight rise to 4.8%, how accurate it is we will find out later today.



NewForex Analyst

Luigi Campo
Forex News from New Forex: US unemployment by numbers

Today global markets are in the anticipation of unemployment data from the US. The unemployment rate is calculated according to the number of people actively searching for work. In May 2016 this number dropped to 4.7%, a low since November 2007. The number of unemployed residents decreased by 484,000 to 7.4 mln.

An average unemployment level in the USA over 1948 to 2016 period is 5.82% with a high at 10.80% in November 1982 and a low at 2.50% in May 1953.

In May the unemployment rate among man was 4.3%, women 4.2%, Whites 4.1%, among Hispanics 5.6%, Asians 4.1%, African Americans 8.2%. Unemployment among teenagers stands at 16.0%. Around 1.9 mln US residents can not find work for more than half a year. The State calls this group "long-term unemployed".

If we look carefully at the difference between states, the lowest rate in May 2016 was in South Dakota with 2.5%, the highest in Alaska with 6.7%.

June forecast shows a slight rise to 4.8%, how accurate it is we will find out later today.


NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of EUR/USD

During the trading session on Thursday the currency pair rose to 1.1106 and later bounced off to

1.1052 making a firm bearish candlestick in the day chart which shows the market intention to

decline. It is necessary to breach the strong support at 1.1050. In case of success we expect to see

the price at 1.0970. Otherwise, the market has to breach the resistance at 1.1111 which will allow

the pair to climb to 1.1180.

In the trading on Friday the pair remains within the support level at 1.1067 and resistance at

1.1095. EMA20 and EMA55 crossed downwards and keep descending. The MACD-histogram stands in the

negative zone and slowly rises. The oscillator Stochastic sends a signal to sell.

The market consolidated due to the decreased activity of its participants before the release of

macroeconomic data from the US today at 15:00 GTM.

NewForex Analyst

Luigi Campo


Forex News from New Forex: Technical analysis of GBP/USD

On Thursday the pair edged up to 1.3076 but later bounced off to 1.2878 finishing trades with a

neutral day candlestick which says about the weakness of the currency pair and market consolidation

giving chances both to bulls and bears, according to the current technical structure.

On Friday the price remains within the support at 1.2883 and resistance at 1.3000. However, it is

not so simple here. Today at 15:30 GTM the market expects the release of unemployment data and

nonfarm payrolls for June. Consequently, all market participants shudder to a halt in the

anticipation of macroeconomic statistics from the US. Thus, a further scenario totally depends on

the released data.

Exponential moving averages consolidated, decline and slowed down. The MACD-histogram remains in the

negative zone but slightly rises. The RSI also stands below its central line. The Stochastic sends a

signal to buy. We don’t exclude a further market descend hitting new record lows, even if the

greenback receives firm support today.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Commodity currencies slide amid low oil prices

The Australian and the New Zealand dollar lose ground against the greenback in the trading on Monday, July 11. The US dollar gained strong support after the release of upbeat employment data last Friday and due to low oil prices. At the moment the currency instrument AUD/USD shed 0.28% to 0.7546. The number of home loans decreased in Australia in May by 1.0% which is significantly better than the forecast at -2.0%. In April the number of loans increased by 1.4%. Tomorrow markets will be in the expectation of business conditions and business confidence in Australia.

The pair kiwi/dollar stands at 0.7243 (-0.82%). Tomorrow the release of Food Price Index for June is expected in New Zealand. In May it declined by 0.5%.

Commodity currencies suffer from falling oil prices. WTI edged down to 1.63% to $44.68 a barrel. Brent slid 1.52% to $46.05. The Canadian dollar slipped to 0.39% versus the buck to 1.3094.

The dollar index stands at 96.72 (+0.43%) which is a 2-week high.



NewForex Analyst

David Fineberg

Forex News from New Forex: US dollar advances after Friday data

Today, on July 11, the US dollar climbs against the main currencies after optimistic employment data in the US. In June 287 000 new working places were registered instead of expected 175 000. Average hourly earnings edged up 2.6% in comparison with the same period last year. The unemployment level slightly rose from 4.7% in May to 4.9% in June.

The pair euro/dollar shed 0.21% to 1.103. Pound/dollar dropped by 0.65% to 1.2868 which is close to a 31-year low. Market participants are in the anticipation of the Bank of England minutes on Thursday, July 14. It is assumed that the interest rate will remain unchanged at 0.5%. However, the Bank of England might introduce extra stimulus measures to support economy after Brexit.

The pair dollar/yen picked up 1.78% to 102.3. The Japanese currency loses ground after the decision of Prime-Minister Shinzo Abe to launch a new round of fiscal stimulus.

European stocks are in the positive zone after the Bank of Japan decision and upbeat data from the US. The pan-European index STOXX 600 surged 0.48%. The UK’s FTSE jumped 0.55%, the German DAX rose 1.07%, the French CAC 40 added 0.70%.


NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of EUR/USD

On Monday, July 11, the pair EUR/USD trades within the support at 1.1015 and resistance at 1.1055. As we see on today’s 5-minute chart the price is under pressure ahead of the Eurogroup meeting. In late afternoon on Friday the market showed high volatility after the publication of the US nonfarm payrolls. Today the MACD-indicator indicates the formation of a sideways market trend. Taking into account signals of most indicators, it’s worth considering orders to sell on Monday.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Aussie and kiwi look confident

The Australian and the New Zealand dollar significantly rise in the trading on Tuesday, July 12. Positive data from Australia and increasing oil prices lend support to these currencies. The pair AUD/USD stands at 0.7623 (+1.22%). The business confidence index in Australia climbed from 3 in May to 6 in June, the index of business conditions advanced from 10 to 12 last month.

The pair kiwi/dollar jumped to 0.7299 (+1.12%). Oil prices gain ground amid supply disruptions in Iraq. WTI surged 0.56% to $45.30 a barrel, Brent added 0.76% to $46.64. The dollar index slid 0.49% to 96.11.

In general, Asian markets show positive dynamics today. The Japanese index Nikkei edges up in the expectation of fiscal stimulus from the central bank of Japan. The Nikkei picked up 2.46%, the Topix and the JPX-Nikkei Index 400 advanced 2.4%.

The Chinese market gains as well. The CSI300 index, which includes stocks of the largest companies of Shanghai and Shenzhen, rose 2.2%. The Shanghai Composite jumped 1.8%.



NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Gold falls after the release of US data

In the trading on Tuesday, July 12, gold prices decrease as market participants consider chances of interest rate hike in the USA after the release of positive employment data. Market tension subsides after the decision of the UK to leave the European Union.

Gold spot shed 0.16%. On Monday the decline was 0.8%, the biggest descend in the last two weeks. Gold futures with the delivery in August slid 60 cents or 0.05% to $1,356.00 a troy ounce. However, since the start of the year the yellow metal picked up almost 30% amid faint hopes for the interest rate hike in the USA.

Meanwhile, silver gains 0.42% to $19.30.

European markets behave confidently today. The pan-European index STOXX 600 added 1%. The German DAX advanced 1.71%, the French CAC 40 jumped 1.71% as well, the UK’s FTSE trades in flat. Uncertainty over the political situation in the UK gradually eases after the appointment of Theresa May as the UK Prime-Minister. This Wednesday, on July 13, she is getting officially into office.



NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of EUR/USD

In the trading on Tuesday, July 12, the pair EUR/USD keeps it yesterday’s bearish sentiment. As we see on a 5-minute chart it trades within the support at 1.1045 and resistance at 1.1125. The indicator Stochastic shows that the pair EUR/USD stands in the zone of overbought. It allows us to suppose that the pair will decline in the short run.

At the moment market participants are in the anticipation of the Bank of England meeting over the interest rate this Thursday. And also we wait for the retail data from the USA which is due to be released on Friday and might influence on the dollar rate. These two events may affect changes within the pair this week.

NewForex Analyst

David Fineberg

 

[Anna Mon]

Forex News from New Forex: Asian markets closed with a rise shrugging off low data from China

Asian markets closed today with a firm rise in the expectation of new monetary stimulus from Japan. The MSCI Asia Pacific Index climbed 0.7%. The Japanese Topix jumped 1.1% advancing 6.3% during the last two trading sessions. The yen gained 0.06% against the buck after a 4% decline at the start of the week.

The Australian and the New Zealand dollar shed 0.01% and 0.04%, respectively. The fall is caused by the decrease of import in China by 8.4% in June and export by 4.8%. It has strong influence on these currencies as China is the leading export market for Australia and New Zealand. The yuan slid 0.04% against the US dollar. The Hang Seng climbed 0.5%, the China Enterprises Index picked up 0.06%. Market participants assume that the central bank of China will introduce new stimulus measures in the coming months.

European stocks move in mixed ways in the trading on Wednesday, July 13. Markets recover after Brexit. The pan-European index STOXX 600 edged up 0.24%. The UK’s FTSE surged 0.08%, the German index DAX slipped to 0.08%, the French CAC 40 climbed 0.21%.



NewForex Analyst

David Fineberg


Forex News from New Forex: US dollar slides against the main currencies

In the trading on Wednesday, July 13, the US dollar tumbles against the leading currencies. The instrument euro/dollar climbed 0.15% to 1.1074. Pound/dollar added 0.19% to 1.3266 after the appointment of Theresa May as the UK Prime-Minister. However, the pound remains under pressure due to the Bank of England meeting which is planned on this Thursday, July 14. The current interest rate at 0.50% might be cut down to 0.25% in order to launch the program of monetary easing to support the economy after the decision of the UK to leave the European Union.

The pair dollar/Swiss franc tumbled 0.41% to 0.9843, the US dollar edges down to 0.05% against the loonie to 1.3032. The Bank of Canada should make a decision over the interest rate today. It is expected that the rate will remain unchanged at 0.5%.



The dollar index slipped to 0.17% to 96.39.

NewForex Analyst

David Fineberg


Forex News from New Forex: Technical analysis of EUR/USD

In the trading on Wednesday the pair stands within the immediate support at 1.1058 and resisitance at 1.1132. As for short-term prospects, on a 4-hour chart we see that the MACD-histogram has just entered a positive zone but the indicator RSI has not staying below its central line. However, the oscillator Stochastic says that the pair is oversold which implies a price increase.

EMA20 and EMA55 flatten after the recent crossing downwards which says about the consolidation within the current level of support at 1.1058.

NewForex Analyst

Luigi Campo


Forex News from New Forex: Technical analysis of GBP/USD

On Wednesday the currency pair trades with a considerable price rise within the immediate support at 1.3109 and resistance at 1.3435.

During the first part of the previous trading session the pair was firmly gaining drafting off the local support level at 1.2985 and later consolidated above the strong resistance at 1.3150. Then the pair continued its rise to 1.3290 with a rally within up to 300 pips. Today during the Asian trading session the pound sterling advances against the greenback to 1.3338, after that there was seen some correction which should determine the power of opposing parties. In case of the dominance of bears the price might reverse to 1.2985. Otherwise, we might expect testing the level at 1.3435.

In a 4-hour timeframe the MACD-histogram entered a positive zone and keeps edging up. Both the RSI and the oscillator Stochastic indicate that the pair is overbought and the bullish sentiment of the market eases. However, the price remains above lines of Ichimoku Kinko Hyo, which gives bulls good chances for the further upsurge.

NewForex Analyst

Luigi Campo

 

[Anna Mon]

Forex News from New Forex: Interest rate in the UK, in the expectation of a fresh record

The base rate in the United Kingdom is an interest rate at which commercial banks take loans from the Bank of England. In theory: the lower the rate is, the cheaper loans for borrowers are. The decision over the UK interest rate is made by nine members of the Monetary Committee of the Bank of England. A meeting of the bank takes place every month. Studying the economic state of the country the decision over the rate is made.

The rate hike decreases inflation supporting savings of citizens and keeping them from loans. Thus, reducing the demand for goods in shops. The rate cutdown boosts the demand and increases prices as the pure income of people rises.

If we consider the period from 1971 to 2016, the highest interest rate was in March 1979 at 17%, the lowest rate is recorded at the moment at 0.5%. This rate has been unchanged since March 2009.

However, after the decision of the UK to leave the European Union most market participants are in the anticipation of the further decline up to 0.25%. Later today we will see if the Bank of England sets a fresh record.


NewForex Analyst

Michael Butnitsky